Hang Ten Company manufactures surf boards and uses an

activitybased

costing system to allocate all manufacturing conversion costs. Each surf board consists of

10

separate parts totaling

$125

in direct materials, and requires

4

hours of machine time to produce. The company incurs no direct labor costs. Additional information follows:

Activity	Allocation Base	Cost Allocation Rate
Materials handling	Number of parts	$2.75 per part
Machining	Machine hours	$5.00 per machine hour
Assembling	Number of parts	$2.50 per part
Packaging	Number of finished units	$4.75 per finished unit

What is the total manufacturing cost per surf board?